5 Human Poverty Index (HPI)The percentage of the population not expected to survive to the age of 40 (P1),The adult illiteracy rate (P2),A deprivation index based on average of two variables: the percentage of the population without access to safe water and the percentage of underweight children under five years old (P3).

7 Can the poor countries ever catch upY Dt = current level of per capita income in developed countries say $25,000YDCt = current level of per capita income in poor countries say $1200rD = per capita income growth of developed countries,rDc = per capita income growth of poor countries,Y D* = assumed PCY in 2020, say $45,000 of developed countriesrDC* = required per capita growth rate of the poor countries.How long it would take to catch up?YDt = YDCt (1 + rDC)nOr,Or n = log(2500/1200)/log(1.02)

8 Can the poor countries ever catch up? (contd.)n = log(2500/1200)/log(1.02)= 153 yearsAt a growth rate of 2% poor countries would require 153 years to reach current living standard of the developed countries.